In 2011, Honeywell announced a similar project with China's Wison (Nanjing) Clean Energy Company.

Honeywell's MTO process converts methanol from gasified coal or natural gas to produce high yields of ethylene and propylene.

The technology allows producers in countries such as China to tap abundant coal resources, rather than more expensive petroleum, to produce petrochemicals, Honeywell said.

"UOP's MTO process will allow Jiutai to use methanol derived from cheaper and abundant coal to maximise yields of high-value petrochemicals, reduce operating costs and expand its presence in China's growing ethylene and propylene markets," said Pete Piotrowski, senior vice president and general manager of Honeywell's UOP Process Technology & Equipment business unit.